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The Cayman Islands Monetary Authority New Enforcement Powers

In a desire to remain at the forefront of relevant international regulatory standards and also to enable ESMA to complete its assessment process in favour of granting the Cayman Islands access to the EU passport regime under the Alternative Investment Fund Managers Directive, the Cayman Islands Monetary Authority (“CIMA") may be granted new enforcement powers. 

If passed in its current form, the Monetary Authority (Amendment) Bill, 2016 will allow CIMA to impose fines for breaches of regulatory laws by licensed or regulated individuals or entities. This will be a particular concern for directors of mutual funds that are regulated under the Mutual Funds Act or companies registered as excluded persons under the Securities Investment Business Act who could be subject to fines for breaches by the funds or investment managers of which they are directors, regardless of whether or not they are resident or present in the Cayman Islands. A broad definition of “breach” will be introduced which means that entities and individuals will need to be aware that inaction on their part, as well as intentional breaches of law, could lead to CIMA imposing a significant fine. CIMA will be able to impose fines from US$5,000 for minor breaches up to a maximum of US$1,219,500 for very serious breaches. CIMA will not be able to impose any fine for a breach that happened before the amendment comes into force.

If you would like further information please contact:

Chris Humphries
Managing Director
Tel:(+1 345) 814 7911

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances.